Financial Analysis Of Pharmaceutical Circulation Enterprises Under Harvard Analysis Framework

The rapid development of the world economy has increased the pressure of people's lives,and the growing demand for medicines has driven the development of China's pharmaceutical industry.At present,there are many problems left in the history of China's pharmaceutical industry.From the research and development,manufacturing,distribution,and sales of medicines to various medical and health services,a huge benefit chain has been formed.The more serious link.Due to the low entry standards and exit costs of the pharmaceutical distribution industry in China,and the lack of effective supervision,the number of distribution companies is small and the scale is small.In recent years,the government has frequently issued relevant policies to rectify the pharmaceutical distribution industry,with the aim of improving the efficiency of pharmaceutical distribution,reducing drug prices,and increasing the concentration of the industry.At present,the implementation of the policy has changed the pattern of the pharmaceutical circulation industry to a certain extent.Many small enterprises have been forced to restructure or withdraw from competition,and their market share has been further concentrated in large pharmaceutical commercial enterprises.The research object of this paper,company a,is a prefecture level subsidiary of Sinopharm holding group,a leading enterprise in the field of local pharmaceutical circulation,a major taxpayer of the government,whose stakeholders include not only creditors,shareholders,but also the government and various medical institutions.At present,company a has a rapid development momentum and high reputation in the local area,but also has the common problem of pharmaceutical circulation enterprises:accounts receivable The large proportion of funds leads to the low turnover rate of current assets,and the company needs to carry out financing activities frequently;the small proportion of monetary funds,the enterprise's asset liquidity needs to be improved;the high cost of enterprise procurement,the Limited procurement scale,and the insufficient bargaining power with suppliers lead to the low profit of the enterprise;the large expenses during the three periods of the enterprise bring heavy burden to the cash flow of the enterprise.Through the analysis of strategy,accounting,finance and Prospect of company a,this paper explores the reasons for the above shortcomings and puts forward some targeted planning suggestions.As the epitome of the local pharmaceutical industry,company a's financial analysis process can provide reference for the development of similar enterprises,and also provide decision support for enterprise managers.Based on the Harvard analysis framework,this article takes Company A as the research object and uses its audited 2015-2018 financial report data to conduct a comprehensive analysis from four aspects:strategy,accounting,finance,and prospects.First,from a strategic perspective,use SWOT analysis to qualitatively analyze non-financial information such as the company's internal and external environments;secondly,understand the company's asset and liability structure through accounting analysis,and the quality of accounting information in major subjects;in the financial analysis section,determine the company's compensation through financial statements and financial indicators Debt,operation,profitability,growth abil'ity;prospect analysis combines strategy,accounting,and financial analysis conclusions to predict the development direction of the industry and the company;and finally summarizes the company's existing problems and proposes future development recommendations.Through the research and analysis of this paper,we can see that the change of national policy has a profound impact on the pharmaceutical circulation industry where the company is located,which to a certain extent determines the survival of the enterprise.The enterprise can highlight the encirclement in the wave of reform not only by the influence of the group,but also by strictly implementing the policy requirements,constantly making up its own shortcomings and playing its advantages.In the future,the medical industry The drug distribution market is unpredictable.Only by continuous efforts can enterprises stabilize the leading position of local drug distribution enterprises in complex forms.